Gold extended downside movement on Thursday, dragging the price of yellow metal to less than $1200 an ounce, following the release of some key economic news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the yellow metal is being traded around $1199 an ounce. A hurdle can be noted near $1240.58, the horizontal l resistance area  ahead of  $1275, the trendline resistance area and then  $1300, the psychological number as demonstrated in the given below daily chart.

On the downside, a support can be noted near $1171, the trendline support area ahead of $1150-$1156, the confluence of psychological number as well as horizontal support area and then $1133, the lower trendline support zone. The technical bias shall remain bearish as long as the $1337 resistance area is intact.

Yellen’s Speach

Federal Reserve Chair Janet Yellen gave the U.S. economy a nearly clean bill of health, two days before Donald Trump arrives at the White House. She touted the economy’s performance over the last several years, noting that over 15 million jobs had been added since 2010, and that unemployment had dropped to 4.7% from 10% in 2009. But she admitted the economy’s recovery has “been a long, slow slog.” Yellen reiterated that she and other Fed leaders expect to raise rates a “few times a year” until 2019.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.